CANADA FX DEBT-C$ firms against softer greenback in quiet year-end trading

* Canadian dollar at C$1.3508 or 74.03 U.S. cents
    * Bond prices mostly rise across the maturity curve

    TORONTO, Dec 29 (Reuters) - The Canadian dollar strengthened
against its U.S. counterpart on Thursday, as the greenback
slipped in tandem with U.S. Treasury yields in quiet holiday
    The U.S. dollar extended its fall late in the previous
session after data showed contracts to buy previously owned U.S.
homes fell to their lowest level in nearly a year. 
    The Canadian dollar ended Thursday's session at
C$1.3508 to the greenback, or 74.03 U.S. cents, firmer than the
Bank of Canada's official close of C$1.3555, or 73.77 U.S.
    The currency's weakest level was C$1.3560, while its
strongest level of the session was C$1.3482.
    "Late yesterday, after the U.S. treasury auctions, we saw
the U.S. dollar weaken off across the board. Everything moved in
tandem there," said Amo Sahota, director at Klarity FX in San
    "The theme over last 24 or so has really been U.S. interest
rates easing off a little bit ... But I wouldn't read anything
too significant in any of these moves right now."
    Yields on most U.S. Treasuries hit at least two-week lows,
halting the U.S. dollar's gains by reducing the appeal of
higher-yielding U.S. assets compared to those of other
    Canadian government bond prices were mostly higher across
the maturity curve, with the two-year price up 3.5
Canadian cents to yield 0.76 percent and the benchmark 10-year
 rising 18 Canadian cents to yield 1.715 percent.
    The Canada-U.S. two-year bond spread was -45.8 basis points,
while the 10-year spread was -76.2 basis points.

 (Reporting by Solarina Ho; Editing by Sandra Maler)